Salvatore Ferragamo (SFER) H2 2024 earnings summary

Executive summary

• FY 2024 marked by challenging macroeconomic and geopolitical conditions, especially in Asia, leading to a 10.5% revenue decline to €1,035M and a net loss of €68M, mainly due to an €84M non-cash impairment charge.

• Strategic focus on product innovation, brand desirability, and operational discipline, with positive Q4 results in primary DTC, notably in handbags and shoes.

• Enhanced marketing, customer experience, and new store concepts rolled out in key global cities to elevate the brand and drive engagement.

• Board approved financial statements, called a shareholders' meeting for April 16, 2025, and CEO Marco Gobbetti resigned.

Financial highlights

• FY 2024 total revenues €1,035M, down 10.5% year-over-year (down 8% at constant FX); Q4 down 7% (down 4% at constant FX).

• Net profit for the year negative at €68M vs. €26M positive in FY 2023; excluding €84M impairment, net profit positive at €16M.

• Gross margin at 71.5% (down 110bps), impacted by higher inventory write-downs and less favorable hedging.

• EBITDA €215M (20.8% margin), down 14.5% year-over-year.

• Net Financial Position Adjusted at €173M positive, down from €224M in 2023; including IFRS16, net debt at €504M.

Outlook and guidance

• Cautious short-term outlook due to ongoing demand uncertainties in luxury and macroeconomic/geopolitical risks.

• Focus remains on strengthening product offer, optimizing customer targeting, and prioritizing revenue and profitability.